Question

The effects of gain and stage disposal at Bonnaroo would be recorded as

A) An increase in assets and equity.
B) A decrease in assets and equity.
C) No impact on assets and equity.
D) An increase in liabilities.

Answer 1

The effects of gain and stage disposal at Bonnaroo would lead to a decrease in assets and equity.

Step-by-step explanation:

The effects of gain and stage disposal at Bonnaroo would lead to a decrease in assets and equity. When an asset is disposed of, it means it is sold, lost, or no longer useful to the business. This results in a decrease in assets, which in turn affects equity.